"It's come in as expected, but we have seen a small move downward since and there's been a little bit of selling of yield type stocks like banks and Telstra." Australia's central bank meets next week to set interest rates, which are at an all-time low, and the CPI figure of 1 per cent is well below their inflation target range of 2 to 3 per cent.

Mining stocks were among the biggest gainers on the Australian bourse, underpinned by a 5 per cent jump in Chinese iron ore futures.

Fortescue Metals Group stocks surged 7.4 per cent to a near two-year high as the miner announced a rise in quarterly iron ore shipments and lowered its production cost target.

The biggest gainers were Fletcher Building, up 1.3 per cent after a government commissioned report this week showed that construction activity is at an all time-high in New Zealand.

Ryman Healthcare slipped 0.7 per cent. While the company announced it had bought a site in Auckland for a NZ$200 million (S$190.8 million) development it also said its first-quarter trading was in line with expectations.